February 15, 2000
China is committing to establish a "tariff-only" import regime; all WTO-inconsistent non-tariff barriers will be eliminated. Any other measure, such as inspection, testing, and domestic taxes must be applied in a manner that is consistent with WTO rules requiring a transparent and non-discriminatory system.
Tariff concessions on grains that will be phased in by 2004 include the following grain products:
|Current Tariff (%)||Tariff in 2004 (%)|
China also will remove the quota on barley, replacing it with a 9 percent tariff.
Tariff-Rate Quota Administration
China, like many WTO-Members, including the United States, will use a tariff-rate quota (TRQ) system and state trading for certain sensitive commodities. Under the agreement, China will permit imports of levels of each commodity at a low duty of (1% for the grain, no more than 10% for partially processed grain products). This volume will expand significantly by 2004. Imports above the quota levels will face a higher duty of 76%, which will be reduced to 65% by the year 2004. China made specific commitments to administer these TRQs so as to maximize the potential that they will be filled. Specifically, if TRQs are not utilized they will be redistributed to other end users who have an interest in importing. Moreover, part of the TRQ for each grain will be reserved for importation through state trading enterprises (such as COFCO) and the rest will be reserved for non-state trading entities. Finally, if a TRQ share that was reserved to be imported by a state trader is not contracted for by October for any given year, it will be reallocated to non-state trading entities.
In summary, China has committed to establish TRQs on the following terms:
|Wheat||Initial TRQ||2004 TRQ||Private Share||1998 Total Imports|
|7,300,000 mt||9,636,000 mt||10%||2,000,000 mt|
|Corn||Initial TRQ||2004 TRQ||Private Share||1998 Total Imports|
|4,500,000 mt||7,200,000 mt||25%, grows to 40%||250,000 mt|
|Rice||Initial TRQ||2004 TRQ||Private Share||1998 Total Imports|
|total||2,660,000 mt||5,320,000 mt||250,000 mt|
|short/med grain||1,330,000 mt||2,660,000 mt||50%|
|long grain||1,330,000 mt||2,660,000 mt||10%|
Trading Rights and Distribution
Sanitary and Phytosanitary Measures